Retail sales fall as consumers cut back and prices soar

All but two retail sectors recorded an annual decline in the volume of sales as consumers cut back amid rising prices and fears of a recession.

All but two retail sectors recorded an annual decline in the volume of sales as consumers cut back amid rising prices and a growing cost of living crisis. Picture: Sasko Lazarov/RollingNews.ie

The volume of retail sales during June 2022 fell by 1.3% compared to the previous month, according to figures released by the Central Statistics Office (CSO).

All but two retail sectors recorded an annual decline in the volume of sales as consumers cut back amid rising prices and a growing cost of living crisis.

Overall, the volume of retail sales in June 2022 had declined by 6.6% on an annual basis.

Ireland's inflation rate reached 9.1% in June 2022 — the highest rate in 38 years.

The only two sectors to record an annual increase in the volume of sales were bars, up 54.5%, and pharmaceuticals, medical and cosmetic articles, which recorded an increase of 6.6%.

However, the statistics body warned that caution should be exercised when interpreting the increase in bar sales due to the comparison with a low base from a year ago when a number of public health restrictions were in place.

The sectors which reported the largest monthly volume decreases were electrical goods, down 13.5%, hardware, paints and glass which reported a decline of 11.3%, as well as clothing and footwear which fell by 6.3%.

Volume of Retail Sales down 1.3% in June 2022https://t.co/jqdyecGNT2 #CSOIreland #Ireland #RetailSales #Services #Retail #Business #BusinessStatistics #IrishBusiness pic.twitter.com/DIIzRM1tX6

— Central Statistics Office Ireland (@CSOIreland) July 28, 2022

In contrast, furniture and lighting along with department stores recorded the largest monthly volume increases, at 25.9% and 19.0% respectively.

Compared to pre-pandemic levels in February 2020, the volume of retail sales in June 2022 increased by 2.4%. 

Meanwhile, the value of retail sales was 0.3% lower in June 2022 compared to May 2022 and 0.9% lower compared to June 2021.

The value of retail sales in the fuel sector increased by 28.5% on an annual basis to June 2022. However, the volume fell by 6.9% over the same period, reflecting higher prices compared with the previous year.

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Stephanie Kelleher, statistician in the business statistics division, said: "Retail sales fell by 1.3% in June 2022 when compared with May 2022 on a seasonally adjusted basis. On an annual basis, retail volumes were 6.6% lower than in June 2021."

Ms Keller continued: "The sectors which showed the largest annual reductions in volume were other retail sales (-29.8%), food, beverages and tobacco (specialised stores) (-14.6%) and motor trades (-14.5%)."

The proportion of retail sales transacted carried out online (from Irish registered companies) was 4.9% in June 2022, this is a decline of 0.8% compared to May 2022 and no change from June 2021.